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Business News Digital
Spotify and Tencent discussing share swap
By Chris Cooke | Published on Monday 4 December 2017
Spotify is in talks to do a share swap with the music subsidiary of Chinese web giant Tencent, according to sources who have been busy chit chatting to the Wall Street Journal.
According to the WSJ, the two digital music firms are considering taking up to a 10% stake in each other’s companies through a share exchange. Tencent Music – which among other things operates Chinese streaming service QQ – would also hand over some cash under the deal, to account for the two companies’ different valuations.
Spotify, of course, is expected to list on Wall Street next year, while Tencent is also expected to float its spun-off music business on a stock exchange towards the end of 2018.
This deal would provide Spotify with a useful cash injection, while the alliance would also provide a route into that Chinese music market that everyone is so very excited about. For its part, Tencent Music would get better access to the global music industry.
